If you borrow \( \$ 500 \) for 6 years at an annual interest rate of \( 7 \% \), how muc will you pay altogether? \( \$[?] \)

To calculate the total amount you will pay after borrowing \( \$500 \) for 6 years at an annual interest rate of \( 7\% \), we can use the formula for the total amount \( A \) in simple interest: \[ A = P(1 + rt) \] where: - \( P \) is the principal amount (the initial amount borrowed), - \( r \) is the annual interest rate (in decimal form), - \( t \) is the time in years. ### Step 1: Identify the known values - \( P = 500 \) - \( r = 0.07 \) (since \( 7\% = \frac{7}{100} = 0.07 \)) - \( t = 6 \) ### Step 2: Substitute the values into the formula Now we can substitute the known values into the formula: \[ A = 500(1 + 0.07 \times 6) \] ### Step 3: Calculate the interest First, calculate \( 0.07 \times 6 \): \[ 0.07 \times 6 = 0.42 \] ### Step 4: Substitute back into the formula Now substitute this back into the equation: \[ A = 500(1 + 0.42) = 500(1.42) \] ### Step 5: Calculate the total amount Now calculate \( 500 \times 1.42 \): \[ A = 500 \times 1.42 = 710 \] ### Final Answer Thus, the total amount you will pay altogether is \( \$710 \).